State Bank Of India · NSE:SBIN
State Bank Of India — FY2016 Earnings Presentation
49 slides from State Bank Of India's earnings presentation, May 27, 2016
Slide 1: Annual Results FY16 Analyst Presentation
Annual Results FY16 Analyst Presentation 27.05.2016
Slide 2: Safe Harbor
Safe Harbor Certain statements in these slides are forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of
Slide 3: Agenda
• Financial Performance • Business • Capital • Asset Quality • Digital • Associates & Subsidiaries • Balance Sheet • Awards & Accolades 3
Slide 4: Sustained Operating Performance
Sustained Operating Performance Rs. In Crores Q4FY15 Q4FY16 YOY % FY15 FY16 YOY % Interest Income 40,101 42,831 6.81 1,52,397 1,63,685 7.41 Other Income 8,515 10,696 25.61 22,576 28,158 24.73 Total Income 48,616 53,527 10.10 1,74,973 1,91,844 9.64 Interest Expenses 25,389 27,541 8.47 97,382 1,06,803
Slide 5: Provisions and Net Result
Provisions and Net Result Rs. In Crores Q4FY15 Q4FY16 YOY % FY15 FY16 YOY % Operating Profit 12,760 14,192 11.22 39,537 43,258 9.41 Total Provisions 9,018 12,928 43.36 26,436 33,307 25.99 Loan Loss 4,986 12,139 143.47 17,908 26,984 50.68 Standard Assets 1,829 996 -45.58 2,435 2,158 -11.41 Investment
Slide 6: Interest Income/Expenses
Interest Income/Expenses Rs. In Crores Q4FY15 Q4FY16 YOY % FY15 FY16 YOY % Interest on Loans 28,269 29,242 3.45 1,12,344 1,15,666 2.96 Interest on Resources 9,635 11,113 15.34 35,859 42,925 19.71 Other Interest income 2,198 2,476 12.65 4,194 5,094 21.45 Total Interest Income 40,101 42,831 6.81 1,52,
Slide 7: Robust Growth in Non-Interest Income (1)
Robust Growth in Non-Interest Income ------ (1) (in %) Fee Income to Core Operating Income* Recovery in w/o A/cs to Core Operating Income* 105 bps 50 bps 3.75 20.56 3.25 19.51 Mar 15 Mar 16 Mar 15 Mar 16 * Excluding Trading Income and One Time Items 7
Slide 8: Robust Growth in Non-Interest Income (2)
Robust Growth in Non-Interest Income ------ (2) Rs. In Crores Q4FY15 Q4FY16 YOY % FY15 FY16 YOY % Fee Income 4,901 5,794 18.22 14,139 15,658 10.74 Profit/Loss on Sale of Investments 1,659 1,416 -14.67 3,618 5,017 38.67 Forex Income 535 596 11.35 1,936 2,112 9.11 Dividend Income 616 395 -35.90 677 47
Slide 9: Growth in Non-Interest Income Across Verticals
Growth in Non-Interest Income Across Verticals Retail Corporate Rs. In Crores 10.67% 6,166 12.07% 11,513 5,571 10,273 Mar 15 Mar 16 Mar 15 Mar 16 Treasury Foreign Operations 3,632 33.80% 125.03% 6,847 5,118 1,614 Mar 15 Mar 16 Mar 15 Mar 16 9
Slide 10: Robust Growth in Fee Income
Robust Growth in Fee Income Rs. In Crores Q4FY15 Q4FY16 YOY % FY15 FY16 YOY % Fee Income 4,901 5,794 18.22 14,139 15,658 10.74 of which : 1,027 1,175 14.44 2,728 2,939 7.74 Loan Processing Charges Commission on Govt. 476 465 -2.19 1,968 1,975 0.34 Business Commission on LC/BG 842 826 -1.93 3,011 3,1
Slide 11: Investing in Our Future Growth
Investing in Our Future Growth Rs. In Crores Q4FY15 Q4FY16 YOY % YOY% * FY15 FY16 YOY % YOY% * Staff Expenses 6,567 6,943 5.73 5.73 23,537 25,114 6.70 6.70 Overheads 3,901 4,852 24.38 12.39 14,517 16,669 14.82 11.62 Operating 10,467 11,794 12.68 8.37 38,054 41,782 9.80 8.61 Expenses Cost to Income 4
Slide 12: Containing Operating Expenses
Containing Operating Expenses Rs. In Crores Rs in Crores Q4FY15 Q4FY16 YOY % FY15 FY16 YOY % Staff Expenses 6,567 6,943 5.73 23,537 25,114 6.70 of which : Salary 5,166 4,913 -4.90 19,393 19,207 -0.96 Contribution for Employees 1,401 2,030 44.94 4,144 5,907 42.55 Overheads 3,901 4,852 24.38 14,517 16
Slide 13: Key Performance Indicators: Performance Ratios
Key Performance Indicators: Performance Ratios Yield & Costs (%) Net Interest Margin (%) YOA COD COF Domestic Foreign Whole Bank 10.55 10.33 10.32 10.12 3.54 10.00 3.29 3.32 3.22 3.27 3.16 6.49 2.99 3.01 2.93 2.96 6.44 6.39 6.34 6.31 1.33 1.34 6.39 1.18 1.30 1.29 6.35 6.30 6.26 6.22 Mar 15 Jun 15 Se
Slide 14: Other Performance Ratios
Other Performance Ratios Earnings Per Share (Rs) Book Value per Share(Rs) 19.52 19.95 17.55 175.95 177.77 176.60 15.10 12.98 162.54 160.84 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 ROA (%) ROE(%) 0.72 0.73 0.68 12.3 12.61 0.55 11.17 0.46 9.65 7.74 Mar 15 Jun 15 Sep 15 Dec
Slide 15: Strong Deposit Franchise (1)
Strong Deposit Franchise……(1) Rs. In Crores Market Share : Domestic Deposits (% YOY growth) 94,298 17.57 89,557 17.00 FOs (5) 16.46 16.57 16.29 9,19,092 8,49,476 TD (8 ) Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 CA ( 10) 1,35,768 1,23,855 Personal Segment Deposits SB (13 ) 5,81,564 12.90% 5,13,905 YOY 11,9
Slide 16: Strong Deposit Franchise (2)
Strong Deposit Franchise……(2) Rs. In Crores CASA Deposits CASA Ratio YOY% 12.48% 9.92% 7,17,332 6,37,760 5,80,197 1,35,768 1,23,855 CA 43.84 96 bps 1,10,935 5,81,564 SB 4,69,262 5,13,905 42.88 Mar 14 Mar 15 Mar 16 Mar 15 Mar 16 Daily Average CASA Ratio - FY 16:42.26% 16
Slide 17: Transaction Banking Reinforcing Deposit Franchise
Transaction Banking Reinforcing Deposit Franchise Number of Current accounts (in lacs) Current Accounts Deposits (in Crores) 8.55% 9.62% 35.39 32.62 1,35,768 1,23,855 11.47 10.70 62,672 57,324 8.66 8.10 35,680 32,564 9.61 8.84 24,413 26,719 4.98 5.65 9,554 10,697 Mar 15 Mar 16 Mar 15 Mar 16 Metro Ur
Slide 18: Retail Advances Driving Growth
Retail Advances Driving Growth (% YOY growth) Rs. In Crores 39,033 3 Share % Misc (41) 27,675 2 2,66,817 18 2,34,532 FOs (14) 18 3,27,075 22 Retail (20) 20 2,72,429 1,25,387 8 9 1,19,782 Agri (5) 1,89,536 12 14 1,81,473 SME (4) 2,32,626 15 16 2,17,556 MCG (7) 21 3,29,026 22 2,81,977 CAG (17) Mar 15
Slide 19: Home Loans Constitute Nearly 60% of Retail Loans
Home Loans Constitute Nearly 60% of Retail Loans Rs. In Crores Home Loans Auto Loans Other P-Segment Loans 19.67% 19.91% 20.89% 190,552 38,549 159,237 97,974 32,149 81,043 Mar 15 Mar 16 Mar 15 Mar 16 Mar 15 Mar 16 Market 25.33% 25.52% 21.36% 25.21% Share Total P-Segment FY15 FY16 FY15 FY16 FY15 FY16
Slide 20: Diversified Exposure Across Industries
Diversified Exposure Across Industries Rs. In Crores Mar 15 Mar 16 Mar 16 Level % Share Level % Share YOY Gr % Infrastructure 1,77,253 16.10 2,07,522 16.70 17.08 of which: Power 1,03,264 9.38 1,36,455 10.98 32.14 Telecommunication 32,226 2.93 21,445 1.73 -33.46 Roads & Ports 16,603 1.51 18,934 1.52
Slide 21: Corporate Portfolio Moving Towards Better Grades (1)
Corporate Portfolio Moving Towards Better Grades….(1) Corporate A & Above (%) Below A (%) FY14 45 55 FY15 48 52 FY16 51 49 Movement (FY14-16) 6 -6 ( Covers, exposures eligible for external rating) YOY Growth in CRWAs at 8.53% is lower than the loan growth of 13.04% 21
Slide 22: New Connections: Trend Towards Above A Rating (2)
New Connections: Discerning trend towards above A rating… (2) A & Above Below A During FY14 (%) 23 77 During FY15 (%) 49 51 During FY16 (%) 65 35 Movement (FY 14-16) 42 - 42 22
Slide 23: Risk Mitigation in SME & Agri Portfolios
Risk Mitigation in SME & AGRI Portfolios Rs. In Crores Risk Mitigated Products Risk Mitigated Level B/S Fin Total as % to Total ABL Bills eDFS CGTMSE SME Portfolio SME Mar 15 1,22,599 7,408 30,959 10,025 10,482 1,81,473 36 Mar-16 1,17,653 15,905 30,900 14,048 11,030 1,89,536 41 YOY Growth -4,946 8,4
Slide 24: Strong Capital Position (1)
Strong Capital Position …(1) 12.44% 13.12% 12.00% 3.20% 2.72% Tier II 2.40% AT1 0.13% 0.29% 0.11% Tier 1 CET1 9.72% 9.60% 9.81% 9.92% 9.59% 9.31% Mar 14 Mar 15 Mar 16 $ 24
Slide 25: Strong Capital Position (2)
Strong Capital Position…..(2) CAR RBI Mandate 12.10% by March 2019 Current CAR 13.12% Capital Raised FY16 Rs. 15,893 crore GOI Rs. 5,393 crore Tier II Bonds Rs. 10,500 crore Retained Earnings Rs 7,598 crore Way Forward Expected divestment of non-core investments / subsidiaries to add more than Rs.
Slide 26: Gross NPAs by Segments
Gross NPAs by Segments Rs. In Crores Mar 15 Dec 15 Mar 16 Sector NPA Ratio% NPA Ratio% NPA Ratio% Large Corporate 1,510 0.54 8,121 2.64 20,696 6.27 Mid Corporate 23,029 9.76 30,710 14.33 41,515 17.12 SME 16,387 7.78 17,785 8.41 17,032 7.82 Agri 10,652 8.90 10,329 8.50 8,687 6.93 Retail 2,528 0.93 3,
Slide 27: Movement of NPAs
Movement of NPAs Rs. In Crores FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 FY16 Opening Level of Gross NPAs 61,605 56,725 56,421 56,834 72,792 56,725 Less :Recovery 9,235 1,209 892 659 1,627 4,389 Less: Up gradation 3,776 1,494 629 378 97 2,598 Less :Write-off 21,313 4,919 3,941 3,697 3,208 15,763 Add: Fresh S
Slide 28: Movement of Impaired Assets
Movement of Impaired Assets Rs. In Crores Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Gross Advances 13,35,424 13,13,735 13,70,701 14,28,495 15,09,500 Restructured Standard 55,843 55,954 53,452 48,597 39,055 Total Gross NPAs plus Restructured Std. 1,12,568 1,12,375 1,10,286 1,21,389 1,37,228 Net Restructured
Slide 29: Outlook on Stressed Assets
Outlook on Stressed Assets Rs. In Crores Exposure under Of Which % Share in Total Credit Industry Stress (O/S) 5/25 & SDR Restructured Portfolio Power 4748 1424 0.31 Iron & Steel 4299 644 2628 0.28 Engineering 3574 1936 924 0.24 Oil & Gas 3396 0.22 Construction 2608 1479 0.17 Chemicals 2326 2143 0.1
Slide 30: Exposure to Top Stressed Sectors
Exposure to Top Stressed Sectors Rs. In Crores FB O/S as on Already NPA 5/25 & SDR Restructured Remaining Industry 31.03.2016 (%) (%) (%) Stressed (%) Power 136455 1.94 1.04 2.43 Iron & Steel 82533 32.71 0.78 3.18 1.24 Textiles 43605 20.27 2.35 0.36 Construction 30688 19.38 4.82 3.68 Roads 18934 19.
Slide 31: Digital Initiatives (1) Retail
Digital Initiatives ..... (1) Retail Mobile Banking Internet Banking No. of Customers : 2.70 crores No. of customers : 2.55 crores Transaction Amount : Rs. 38,000 crore Transaction Amount : Rs. 2,25,000 crores SBI Exclusif SBI InTouch Allows Omni-channel access to wealth 133 branches openend so far
Slide 32: Digital Initiatives (2)
Digital Initiatives …. (2) Government Corporate Direct Benefit Transfer : Business on e Platform: Processed DBT of more Centre: 61% than Rs. 56,000 crore. State: 61% Sole Banker for LPG subsidy Non Tax Receipt Portal Mobile Banking (Bharatkosh) e-Governance No. of Customers: 44,411 State Bank Anywhe
Slide 33: Moving away from Cash to Digital
Moving away from Cash to Digital Break Up of Transactions(%) Mar 15 Mar 16 Break Up of Transactions 43 (Mar 15) 45 30 70 74 26 4 15 2 4 6 2 INB POS MBS Kiosk ATM/CDM Branch 5 18 Increasing Share of Digital in an ever expanding pool 33
Slide 34: Alternate Channels: Dominant Market Share
Alternate Channels: Dominant Market Share Channel Market Share (%) Number of ATMs 25.09 ATM : Amt of Txns 42.66 Number of Debit Cards 28.40 Debit Card Spends 22.75 Number of PoS Terminals 21.85 PoS: Value of Txns 13.10 Mobile Banking: Number of Txns 35.46 Mobile Banking: Value of Txns 32.01 34
Slide 35: Expanding Digital Footprint (1)
Expanding Digital Footprint….(1) Mobile Banking Transactions Internet Banking Transactions POS Transactions (No.in Lacs) (No. in Crores) (No. in Lacs) 124 882 1,441 90 565 64 771 278 574 Mar 14 Mar 15 Mar 16 Mar 14 Mar 15 Mar 16 Mar 14 Mar 15 Mar 16 Debit Card spends Contact Centres Avg No. of Calls
Slide 36: Expanding Digital Footprint (2)
Expanding Digital Footprint …. (2) No of Calls (lacs) No of Registrations (in lacs) 140 126 130 114 Monthwise 28.91 13.35 7.86 0.88 1.00 Dec 15 Jan 16 Feb 16 Mar 16 Total* Dec 15 Jan 16 Feb 16 Mar 16 * Cumulative till 9.5.2016 Users Review Users Review Rolled out at more than 6,691 No Queue App down
Slide 37: Our Financial Inclusion (1)
Our Financial Inclusion ….(1) Financial Inclusion Accounts ( No. in Crs) Transactions through BC Channel 9.28 (No. in Crores) PMJDY Others 7.28 21.69 5.32 3.33 14.16 7.07 3.53 3.95 3.96 Mar 14 Mar 15 Mar 16 Mar 14 Mar 15 Mar 16 Out of PMJDY A/cs: Aadhar seeded A/cs Mar 15: 1.18 crs Mar 16: 2.31 crs
Slide 38: Our Financial Inclusion (2)
Our Financial Inclusion …. (2) Average Balance (Rs.) Zero Bal. A/cs (%) F.I A/cs 909 PMJDY A/cs 69 54 53 618 606 44 37 Mar 14 Mar 15 Mar 16 Mar 14 Mar 15 Mar 16 Financial Literacy Social Security Schemes RSETIs ( Total Numbers:116) FY16 Cumulative (Enrolment up to 31.03.2016) (in Lacs) No of Trainin
Slide 39: SBI on Social Media
SBI on Social Media SBI ranked No.1 among Top 100 Banks using Social Media by The Financial Brand in their list of “Power 100 Ranks – Banks” SBI Online is the world’s 8th most visited banking site. Highest number of likes across all banks in the world - 53.37 Lakhs Highest number of followers across
Slide 40: SBI If Merged
SBI….If Merged All Associate SBI Merged Entity Banks FY 16 FY 16 FY 16 Net Profit ( Rs in crore) 9,951 1,639 11,589 CAR % 13.12 11.59 12.66* Gross NPA 98,173 23,796 1,21,969 Gross NPA % 6.50 5.98 6.40 Net NPA 55,807 13,087 68,894 Net NPA % 3.81 3.39 3.73 Restructured Advances 66,117 35,396 94,569 (R
Slide 41: SBI Life
SBI Life New Business Premium (Rs crore) • Maintains market leadership amongst private sector with Total New Business Premium of Rs 7107 crores (28.5% growth over previous year) 7,107 • Growth led by bancassurance channel with 52% growth to reach NBP of Rs 3213 6,527 crores • Covered over 60 lakh li
Slide 42: SBI General
SBI General GWP growth 29% against Industry Growth 14% Investment Income grew by 27% YoY from Rs.207 cr Last Year to Rs.264 cr. Growth 29.4% against 13.8% Industry No. 1 Bancassurer in the Industry Personal Accident - 2nd position in Industry and among Private Insurers Fire - 2nd positio
Slide 43: SBI Capital Markets
SBI Capital Markets Significantly improved ranking from 14 to 2 as per Bloomberg India Domestic bonds and from 18 to 9 in ‘Debt Private Placement’ as per Prime Database Ranked No 1 in Rights Issues for FY15 (size as well as no. of issues), having handled 7 out of the 14 issues in the market as p
Slide 44: SBI Funds Management
SBI Funds Management ► SBI MF break into top 5 Fund Houses in the country ► SBI MF had highest absolute AAUM growth in the Industry with a growth of 42% YOY compared to industry average of 14%. ► SBI MF market share grew by 1.59 % to 7.89 % in FY 16. Digital solutions & customer service - Launched d
Slide 45: SBI Cards and Payment Services
SBI Cards and Payment Services PBT (INR Crs) Strong business performance . . . PBT up 62% YoY 62%* Strong market positioning • 3rd largest card base with 15% market share 438 271 • Moved from 5th 4th rank on spends with 12% share 14-15 15-16 Consistently outperformed industry with 30+% growt
Slide 46: Balance Sheet (Solo)
Balance Sheet (Solo) Rs. In Crores Liabilities Mar 15 Mar 16 YOY Growth (%) Capital 747 776 3.98 Reserves and Surplus 127,692 143,498 12.38 Deposits 1,576,793 1,730,722 9.76 Borrowings 205,150 224,191 9.28 Other Liabilities & Provisions 137,698 159,876 16.11 Total Liabilities 2,048,080 2,259,063 10.
Slide 47: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Rs. In Crores Liabilities Mar 15 Mar 16 YOY Growth (%) Capital 747 776 3.98 Reserves and Surplus 1,60,641 1,79,816 11.94 Minority Interest 5,497 6,267 14.01 Deposits 20,52,961 22,53,858 9.79 Borrowings 2,44,663 2,58,214 5.54 Other Liabilities & Provisions 2,35,601 2,71,9
Slide 48: Awards & Accolades
Awards & Accolades Guinness Book of World Records recognized Bank’s Contribution for the PAHAL(DBTL), GOI, Scheme for which SBI is sole sponsor Bank Best Bank in India by Global Finance, NewYork Best Large Bank and Banker of the Year by Business World, Mumbai Best Analytics Award by Finnoviti, Mumba
Slide 49: Thank You
Thank You 49